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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

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Unit economics

Fundamental analysis

The revenue and cost of a single transaction or a single customer, examined separately from the company as a whole.

In plain terms

A stall selling samosas at ₹10 that cost ₹11 loses more the more it sells. If the unit does not work, scale is the problem rather than the solution.

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Path to profitability

Fundamental analysis

The route by which a loss-making company is expected to reach profit, judged as two questions in order: does one customer make money, and can total contribution ever cover the fixed cost base?

In plain terms

A company can pass the first test and fail the second permanently. Positive unit economics with a cost base the addressable market cannot support is what catches people who stopped checking after the first question.

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Indian stock market glossary · Market Vidyalaya